Superior Court Rules Pensions to be Divided at Source; Each Case Depends on its Own Facts
June 12, 2026
A judge in the Ontario Superior Court of Justice recently made a ruling in a separation application regarding division and equalization of assets for a couple who has separated.
In Browne v. Browne the Applicant requested an order equalizing the pensions at source. The Respondent asserted that the immediate needs of the parties and financial realities should rule in favour of pension equalization from the proceeds of the matrimonial home. The Applicant, who has not yet retired, asserted that if he was required to include his pension in the equalization payment there would be little left from the sale of the matrimonial home.
The judge ruled that there is no presumption of a statutory onus that an equalization payment will be made by a transfer of a lump sum payment from a pension plan. The ruling also stated that “each case depends on its own facts.”
In this case, the Judge accepted the Applicant’s argument that division at source makes more sense financially, which will also enable taxes to be deferred until the parties retired. The court ordered that the parties’ respective pensions be divided at source and not be included in the equalization of the parties’ Net Family Property. Accordingly, there would be no deduction for notional disposition costs either.
Click on ‘More information’ below to read the full decision:
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